The incumbent Defense Advisor at the U.K. High Commission in Colombo, Colonel Paul Clayton and his successor Colonel Darren Woods, visited the Navy Headquarters on Thursday (01) for a farewell and introductory office call with the Commander of the Sri Lanka Navy, Vice Admiral Priyantha Perera.

After welcoming the visiting U.K. Defense Advisors at the Navy Headquarters, a cordial discussion was held between the two parties on several matters of bilateral importance.

By Shyam Nuwan Ganewatta

Sri Lanka’s economy would recover at a rapid pace in the second half of 2023, Central Bank Governor, Dr. Nandalal Weerasinghe said yesterday addressing a press conference in Colombo.Dr. Weerasinghe also said that the inflation would drop to a single digit by the end of July 2023.

Strict fiscal and monetary policy of the Central Bank was the main reason for this rapid decrease, Dr. Weerasinghe said, adding that the Central Bank did not have a predetermined level at which it would halt the appreciation of the rupee. Instead, it aimed to curb excessive volatility in the currency while allowing it to fluctuate within a flexible exchange rate framework. The CBSL had actively intervened in the market to increase reserves and prevent drastic fluctuations in the rupee’s value, the Governor said.

Since March, the rupee had appreciated from approximately 360 against the US dollar to around 290 at present. The Central Bank had purchased dollars from the market to bolster reserves and mitigate extreme movements in the rupee’s value. In May alone, the bank acquired 662 million US dollars, bringing the total net purchases to 1,671 million US dollars thus far, he said.

The Central Bank intended to lift certain exchange controls including capital flow measures in the near future. Additionally, a set of import controls will also be removed. As of the end of May, Sri Lanka’s gross foreign reserves stood at an estimated 3.1 billion US dollars, according to the Central Bank.

Regarding a budget support loan received from the Asian Development Bank, the funds were currently held in the Treasury account. However, when the Treasury required funds, the money would be given to the Central Bank in exchange for rupees, Dr. Weerasinghe said.

Amidst accusations and counter accusations over the alleged failure on the part of the armed forces to suppress violent protest campaign that forced President Gotabaya Rajapaksa to step down last July, Chief of Defence Staff (CDS) General Shavendra Silva has sent a letter of demand to National Freedom Front (NFF) leader Wimal Weerawansa in respect of the allegations against him in the recently-published book, Nine: The Hidden Story.

General Silva, contacted for comment, said that his lawyers had recently sent a letter of demand to MP Weerawansa. In his letter of demand, the former Army Commander has said that there is absolutely no basis for accusations directed at him and Army over alleged complicity in the overthrowing of the then government.

NFF leader Weerawansa told The Island that he was ready to face legal action.

The fresh move on the part of General Silva followed 39 politicians including ministers withdrawing a petition filed against General Silva over the failure on the part of the then Army Commander to quell countrywide violence, following the SLPP goon attacks on Galle Face protesters on 09 May, 2022.

The Court of Appeal allowed them to withdraw a petition against then Army Commander and Chief of Defence Staff Gen. Shavendra Silva.The bench consisted of President of the Court of Appeal, Justice Nissanka Bandula Karunaratne and Justice A. Marikkar. IGP C. D. Wickremaratne was among the other respondents.

Nearly 70 houses belonging to serving members of Parliament were set ablaze meticulously by well organised gangs across the country on the night of May 09 last year.

Faisz Musthapha, PC, who appeared for General Silva, objected to the withdrawal of the case. The Court of Appeal permitted the withdrawal of the high profile case on the basis of an assurance given by Public Security Minister Tiran Alles to the petitioners to conduct a comprehensive investigation into the May 09 and 10 incidents. Sanjeeva Jayawardena, PC, appearing for the petitioners, sought the court’s permission to withdraw the case. (SF)